Refinancing mortgage

[Roger Van Zant]

I mentioned to my bank that I was considering moving my mortgage to another lender because my interest rate was too high (1.8%).
They reduced it to 1.5% within a week.

If you don't mind my asking, which bank do you have a mortgage with?

A small, local 信用金庫.

[AreTheyTheLemmings?]

I mentioned to my bank that I was considering moving my mortgage to another lender because my interest rate was too high (1.8%).
They reduced it to 1.5% within a week.

If you don't mind my asking, which bank do you have a mortgage with?

A small, local 信用金庫.

Thanks.

[Bushiman]

The 10yr fixed rate is up on the 35yr mortgage my (Japanese) wife had to take out with our local bank as I didn't have PR by then... She was only a part-time worker back then. Looking at the rates you guys are getting, we seem to be paying way over the mark... For the last 10yrs we've been paying 1.95%, and they now want us to pay 2.15% fixed for the next 3yrs... Thankfully we only needed a ¥10 million loan due to a decent chunk of savings, so monthly repayments are a very reasonable ¥3man, and the increase to 2.15% would only be an additional ¥600 or so a month, but seeing people throw out numbers like 0.5%!? And even 1.5%... I feel like we might be getting rinsed!

I've just mentioned to the wife about perhaps switching providers and she thinks it's going to be a giant hassle, a huge nightmare, not worth it, etc. What do you think? Seeing as I'm the one actually paying the bills, I'd love to save some money (more for investments), although, we've been perfectly happy paying ~¥3man a month for the last 10yrs....

Is it a major hassle switching providers?
Is the process really that difficult?
Are we likely to spend hours/days filling out forms, finding documents, meetings at banks etc.?
Do you think it would all be worth it in our situation?
Thanks for any info/opinions!

[Tkydon]

The 10yr fixed rate is up on the 35yr mortgage my (Japanese) wife had to take out with our local bank as I didn't have PR by then... She was only a part-time worker back then. Looking at the rates you guys are getting, we seem to be paying way over the mark... For the last 10yrs we've been paying 1.95%, and they now want us to pay 2.15% fixed for the next 3yrs... Thankfully we only needed a ¥10 million loan due to a decent chunk of savings, so monthly repayments are a very reasonable ¥3man, and the increase to 2.15% would only be an additional ¥600 or so a month, but seeing people throw out numbers like 0.5%!? And even 1.5%... I feel like we might be getting rinsed!

I've just mentioned to the wife about perhaps switching providers and she thinks it's going to be a giant hassle, a huge nightmare, not worth it, etc. What do you think? Seeing as I'm the one actually paying the bills, I'd love to save some money (more for investments), although, we've been perfectly happy paying ~¥3man a month for the last 10yrs....

Is it a major hassle switching providers?
Is the process really that difficult?
Are we likely to spend hours/days filling out forms, finding documents, meetings at banks etc.?
Do you think it would all be worth it in our situation?
Thanks for any info/opinions!

So, refinance to another bank and say goodbye...

https://www.aeonbank.co.jp/housing_loan ... :ptlt:ihol

[Tkydon]

The 10yr fixed rate is up on the 35yr mortgage my (Japanese) wife had to take out with our local bank as I didn't have PR by then... She was only a part-time worker back then. Looking at the rates you guys are getting, we seem to be paying way over the mark... For the last 10yrs we've been paying 1.95%, and they now want us to pay 2.15% fixed for the next 3yrs... Thankfully we only needed a ¥10 million loan due to a decent chunk of savings, so monthly repayments are a very reasonable ¥3man, and the increase to 2.15% would only be an additional ¥600 or so a month, but seeing people throw out numbers like 0.5%!? And even 1.5%... I feel like we might be getting rinsed!

I've just mentioned to the wife about perhaps switching providers and she thinks it's going to be a giant hassle, a huge nightmare, not worth it, etc. What do you think? Seeing as I'm the one actually paying the bills, I'd love to save some money (more for investments), although, we've been perfectly happy paying ~¥3man a month for the last 10yrs....

Is it a major hassle switching providers?
Is the process really that difficult?
Are we likely to spend hours/days filling out forms, finding documents, meetings at banks etc.?
Do you think it would all be worth it in our situation?
Thanks for any info/opinions!

So, refinance to another bank and say goodbye...

https://www.aeonbank.co.jp/housing_loan ... :ptlt:ihol

No hassle whatsoever.

They will give a you a free projection of how much you will save by switching, even after including the switching costs.

They will arrange all the paperwork, and you will have to visit the old bank to sign some paperwork, and say Goodbye and Thanks for All The Fish!

[Bushiman]

The 10yr fixed rate is up on the 35yr mortgage my (Japanese) wife had to take out with our local bank as I didn't have PR by then... She was only a part-time worker back then. Looking at the rates you guys are getting, we seem to be paying way over the mark... For the last 10yrs we've been paying 1.95%, and they now want us to pay 2.15% fixed for the next 3yrs... Thankfully we only needed a ¥10 million loan due to a decent chunk of savings, so monthly repayments are a very reasonable ¥3man, and the increase to 2.15% would only be an additional ¥600 or so a month, but seeing people throw out numbers like 0.5%!? And even 1.5%... I feel like we might be getting rinsed!

I've just mentioned to the wife about perhaps switching providers and she thinks it's going to be a giant hassle, a huge nightmare, not worth it, etc. What do you think? Seeing as I'm the one actually paying the bills, I'd love to save some money (more for investments), although, we've been perfectly happy paying ~¥3man a month for the last 10yrs....

Is it a major hassle switching providers?
Is the process really that difficult?
Are we likely to spend hours/days filling out forms, finding documents, meetings at banks etc.?
Do you think it would all be worth it in our situation?
Thanks for any info/opinions!

So, refinance to another bank and say goodbye...

https://www.aeonbank.co.jp/housing_loan ... :ptlt:ihol

No hassle whatsoever.

They will give a you a free projection of how much you will save by switching, even after including the switching costs.

They will arrange all the paperwork, and you will have to visit the old bank to sign some paperwork, and say Goodbye and Thanks for All The Fish!

Wow! Thanks so much for the info! I appreciate the candid reply... This is what I was hoping to hear.

[Tkydon]

Wow! Thanks so much for the info! I appreciate the candid reply... This is what I was hoping to hear.

And you can do your shopping whilst at the Bank in your local Aeon Store,

And you get additional WAON points on your Aeon Credit Card when you shop at Aeon, over the normal points

If you're over 55, you can apply for the GG Credit Card and get additional 5% off deal days...

[Bushiman]

Well, it turns out that we can't refinance our mortgage after all...

When my wife took out the mortgage 10yrs ago she was working part time. Now, she works even less due to being more of a housewife and taking care of the kids during the day so she makes under ¥1million a year -which is a stipulation for Aeon bank... Now, we could try and transfer the mortgage into my name, but most banks won't do that unless there's a divorce involved. Even if we did manage to transfer the mortgage, Aeon bank requires that I have already been paying 3yrs of the old mortgage before I'm allowed to apply to refinance through them, so I guess we're stuck with the local bank for now... Until the kids are all in school and wifey goes back to more full-time work.

We did do the simulation with Aeon to see how much we'd save changing and it turns out it was only ¥3000 a month... Would've been nice, but not completely gutted this didn't all work out...

Thanks again for the help RetireJapan...

[RetireJapan]

Well, it turns out that we can't refinance our mortgage after all...

Ouch, sorry to hear.

Have you tried talking to your current bank and asking them to improve your interest rate?

A friend of mine did that with his, told them he was thinking of remortgaging to another bank with a lower rate, and they lowered his rate to keep him.

Not sure how successful that tactic would be now, but might be worth a try

[Bushiman]

Well, it turns out that we can't refinance our mortgage after all...

Ouch, sorry to hear.

Have you tried talking to your current bank and asking them to improve your interest rate?

A friend of mine did that with his, told them he was thinking of remortgaging to another bank with a lower rate, and they lowered his rate to keep him.

Not sure how successful that tactic would be now, but might be worth a try

That's worth a shot! Nothing to lose really...
Thanks!